Key Takeaways
- The US Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data for November on Thursday at 13:30 GMT.
- The inflation report will not include CPI figures for October due to a lack of data collection during the government shutdown.
- The CPI data will be crucial in determining the Federal Reserve’s interest rate decision in January.
US CPI Release to Impact Fed’s January Rate Outlook
The United States Bureau of Labor Statistics (BLS) is set to publish the highly anticipated Consumer Price Index (CPI) data for November on Thursday at 13:30 GMT. This release is expected to have a significant impact on the Federal Reserve’s interest rate decision in January. The CPI data is a key indicator of inflation, and its release will provide valuable insights into the current state of the US economy.
Impact of Government Shutdown on CPI Data
However, it’s worth noting that the inflation report will not include CPI figures for October due to a lack of data collection during the government shutdown. This gap in data may lead to a higher-than-expected CPI print for November, which could have a significant impact on the markets. Investors will be closely watching the release to gauge the Fed’s potential response to the inflation data.
Market Expectations and Fed’s Rate Decision
Market expectations are currently divided, with some predicting a rate hike in January and others expecting a pause. The CPI data will play a crucial role in determining the Fed’s decision. A higher-than-expected CPI print could lead to a rate hike, while a lower-than-expected print could result in a pause. Investors will be closely watching the release to adjust their positions accordingly.
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